Presentation at Camões
Anna Rosengren and Bruce Byiers European Centre for Development Policy
Management
Lisbon, 25th March 2014
Engaging with the Private Sector for
Development
• Brief background – what private sector are we talking about?
• Lessons from other EU Member States - Institution- Instruments - Challenges
• The Political Economy of PSD
• Implications for Portugal
Overview of presentation
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• Private sector developmentOld agenda: domestic, enterprise growth, value-addition, exports, access to credit, business climate, firm-level skills, industrial policy etc.
• Private sector investment for developmentNew agenda: international, partnering with developed country firms, offset risk, link producers & suppliers
• Private sector finance for developmentInput side – promote and leverage private sector finance
Three related but distinct agendas :
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Private Sector Development… developing country businesses were able to startup and expand
Private Investment for Development… there was a way to encourage more inwards investment to link with the local private sector
Private Finance for Development…there was a way to bring in more finance for public (or private) investments
Assumptions – development would happen if only…..
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• United Kingdom - The Engine of Development, 2008
• Germany - Forms of Development Cooperation involving the Private Sector, 2011
• Sweden - Collaborations with the private sector, 2011
• The Netherlands - The Good Growth Fund, 2013
Lessons from other EU Member States
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• Collaboration between Ministry of Employment, Ministry of Foreign Affairs and Ministry of Education and Culture + 70 teams abroad
• Activities - Services supporting the internationalisation of business- Influencing the external environment - promoting FDI in Finland- Promoting Finland’s country brand
Team Finland
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• Donor-led models
• Coalition models
• Business models
• Business-CSO models
• CSO-led models
Partnership models
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Mandate and motivation for actors
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• Donor-led - Challenge Funds - Matchmaking facilities
• Multi-stakeholder - Public-private dialogue - IDH - Grow Africa
• Private-led - CSR - Base of Pyramid
PSD Instruments
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Donors • Additionality • Donor attribution • Project-level attribution • Result and impact measurement • Agent selection • Fragile states
Private Sector • Local markets and regulatory challenges • Market distances
Challenges
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• Who leads who and what impact will that have on partnership structures?
- Donor perspective - Private Sector perspective
• The role of national institutions and governance systems.
- Policy and operational perspective - Domestic resource mobilisation
The Political Economy of PSD
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• How to define and understand developmental outcomes?
• Linkages between international investment and the local private sector
• To what degree can we embrace pilot, experiments and failures using taxpayers money?
Other PSD question and issues
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• Alignment with current strategy?
• Portugal’s PSD strategy ( 1 ) extend to more people and better able access to education and health and other basic social services ;( 2 ) create and expand to more people and better conditions , access to employment opportunities and income;( 3 ) foster more and better dialogue and joint action between the public and private sectors in the field of development
cooperation .
• Priority Sector? - Extractives
Implications for Portugal
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Thank youwww.ecdpm.org
www.slideshare.net/ecdpm
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